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Credit Discipline

You are now studying in Polytechnic/University or just started your first job and want to get your first credit card but do not earn more than SG$30,000 per annum? You can and there are options available: Credit cards with SG$500 credit limit.

Well, SG$500 credit limit may not seems much. But these cards served me well when I started on credit cards. They helped me in building up a good credit discipline and increase my spending power when combined.

So here are 2 credit cards that I started on with SG$500 credit limit each long time ago.

Annual fee: About SG$30 for these cards. (Usually 1st year waived. Subsequent waiver at bank’s discretion.)

Credit limit: SG$500. (Usually 2-4x of your monthly income at bank’s discretion for other credit cards.)

Interest rate: About 24% per annum or a minimum amount as stipulated by bank. (Interest can be scary and you will be playing with your credit score if you default. You have been warned.)

Statement date: Please call bank after you received your credit card to know your statement generation/cut off date. (This will help you in planning your purchases.)

Payment grace period: About 20 days. Pay fully within grace period and there will not be any interest charge.

Cash advancement fee: About 6% of amount advanced or a minimum amount as stipulated by bank.

Other fees like late fee or over limit fee which you should never ever need to pay if your credit discipline is good.

How to decide which card to get:

Your spending habit/pattern:

If you are a party guy/gal that frequent Zouk, get Citibank Clear Visa as that credit card offer free entry and 1-for-1 drinks at Zouk.

If you are after cashback, get Standard Chartered Manhattan Platinum MasterCard as that credit card offers 0.25% cashback in this case.

For other credit cards, you will want to look at rewards on offer and flexibility in redeeming rewards.

Bank: If you have any bad blood with any bank or if bank does not has a good reputation, you will not likely want to get a credit card with them. Unless benefit is unrivalled.

Payment method:

Internet banking (Must have!)

SAM (Cut off time 5pm.)

AXS. (Cut off time 8pm.)

Payment network: Usually I recommend 1 Visa, 1 MasterCard and 1 American Express credit card per bank (At least 2 banks. Just in case 1 bank’s cards just all decide to die on you. It can happen!) for maximum acceptance across the globe. (JCB is an exotic 1 for Japan. Only offered by UOB in Singapore.)